TITLE:
Global Optimization of a Semiconductor IC Supply Chain Network
AUTHORS:
Adar A. Kalir, Dean I. Grosbard
KEYWORDS:
Supply Chain Management, Optimization, Network Based Manufacturing, Non-Linear Programming, Quadratic Programming
JOURNAL NAME:
Journal of Service Science and Management,
Vol.10 No.3,
June
27,
2017
ABSTRACT: In this paper we develop a framework for the semiconductor manufacturing process, including front-end (fab) operations and backend (assembly/test) operations. We then propose a Quadratic Programming (QP) formulation for the profit maximizing objective with flexible demand and price ranges (per product) and fab capacities. We demonstrate the model by applying it to a case study that is based on a real-world (distorted) dataset and show how the solution varies between a local optimization of a single fab (for minimum wafer cost) and a globally optimal solution for maximum profit of a network of fabs.